Diageo (DEO), the British alcohol giant, is closing its Canadian bottling facility.
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London-based Diageo, the maker of iconic brands such as Johnnie Walker whisky and Smirnoff vodka, says it will shut down its Crown Royal whisky bottling facility in Canada by February 2026 as it looks to improve its North American supply chain.
The world’s largest maker of spirits said the closure in Canada is part of its broader strategy to shift its bottling production closer to U.S. customers. Diageo did not say how many jobs will be lost, but said it will support impacted employees and work closely with labor unions within Canada during the closure.
Tariff Impacts
Diageo, which also makes Guinness beer, has seen its stock shaken recently by news that the alcohol it makes was not included in the new U.S.-European Union trade deal that caps tariffs on goods from the continent at 15%.
Being left out of the trade deal potentially exposes Diageo to much higher U.S. import tariffs. The impact of tariffs has weighed on DEO stock, pulling it down 10% this year. In an effort to blunt the full force of U.S. tariffs, Diageo has been looking to move a greater share of its production to the American market.
Is DEO Stock a Buy?
Currently, only one U.S. analyst covers Diageo stock. So we’ll look instead at its three-month share price performance. As one can see in the chart below, DEO stock has risen 2.17% in the last 12 weeks.
